Wednesday, October 30, 2013

Doing Business Rankings 2014: Status Quo for India

The Doing Business Rankings 2014 have just been published by the World Bank and IFC. Nothing much has changed in the case of India. It has dropped three places from 131 to 134 out of a total of 189 countries. While the entire report is available here, India’s country report is available here.

India’s rankings on various specific parameters are as follows:

- Starting a business: 179
- Dealing with construction permits: 182
- Getting electricity: 111
- Registering property: 92
- Getting credit: 28
- Protecting investors: 34
- Paying taxes: 158
- Trading across borders: 132
- Enforcing contracts: 186
- Resolving insolvency: 121

On several of these parameters, India’s ranking has remained constant over the years, suggesting that reforms have had minimal impact. On an optimistic note, however, the raising of financing through equity and debt seems to have been eased given that the performance on accessing credit and protecting investors is quite high.

Of course, these rankings have been subjected to some amount of critique, but they nevertheless provide a comparative perspective on doing business in various countries and their importance cannot be discounted altogether. It remains to be seen whether recent reforms on company law, land acquisition, foreign investment, etc. will reflect in improved rankings next year once they are assimilated into the business environment.

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